Tax-Saving Investments
Use tax-saving investments the right way: understand the lock-in, the regime you file under, and the paperwork.
Overview
Tax-Saving Investments
Equity Linked Savings Schemes (ELSS) are diversified equity mutual funds that qualify for a deduction under the old tax regime, within the overall ₹1.5 lakh limit commonly known as the Section 80C limit. They carry a three-year lock-in, which is the shortest among the popular options in that bucket.
If you file under the new tax regime, this deduction is not available. We help you understand the difference so you do not lock money in for a benefit you cannot claim, and we provide the statements your employer or tax preparer needs.
What we help with
What is included
ELSS investments
Lump sum or SIP in ELSS schemes. Each SIP instalment has its own three-year lock-in.
Old vs new regime
A plain-language explanation of which deductions apply in which regime, so your choice is informed.
Investment proofs
Statements and acknowledgements for your employer’s proof-submission window, on time.
Capital-gains statements
Year-end capital-gains reports from the registrars to help with your income-tax return.
54EC bonds
For long-term capital gains on land or buildings, facilitation of eligible capital-gain bonds within the time limit.
Health insurance premiums
Premiums for health cover may qualify for a separate deduction under the old regime.
How it works
Four simple steps
Check your regime
Confirm whether you file under the old or the new regime this year.
See what is already used
EPF, life insurance premiums, home-loan principal and tuition fees may already use part of the limit.
Invest the balance
Invest in ELSS by lump sum or SIP, preferably early in the financial year.
Collect your proofs
We send the statements you need for your employer or tax return.
Questions
Frequently asked
Is the ELSS lock-in counted from my first SIP?
No. Every SIP instalment is locked in for three years from its own date of purchase.
Can I claim the deduction in the new tax regime?
No. The ELSS deduction is available only under the old regime.
Are ELSS returns tax-free?
No. Gains on redemption are taxed as equity capital gains under the rules in force at the time.
Good to know
- Tax benefits depend on the tax law in force and your own situation. Please consult your tax consultant.
- ELSS schemes invest mainly in equities and carry market risk.
- Units under lock-in cannot be redeemed or switched before three years.
Ready to take the first step?
Talk to us about KYC, your first SIP, an NRI investment or an insurance renewal. We reply on call, email and WhatsApp.